Council has endorsed Renewal SA as the preferred proponent to redevelop the former Bus Station site on Franklin Street - with 35 per cent affordable housing a centrepiece of the project.
Renewal SA will act as master developer and enlist the expertise of the private and not-for-profit sectors and other government agencies to deliver a civic building with basement car parking, and two residential and mixed-use towers.
More than 1000 residents will be accommodated in 392 apartments - with more than a third set to be affordable housing for rent and purchase.
Build-to-rent apartments will feature in the CBD for the first time. The precinct will also include a 208- key hotel and significant commercial office space along with retail, food and beverage that will act as complementary extensions of the Adelaide Central Market experience.
The proposed name for the precinct is Tapangka, as the precinct will offer a new approach to city living inspired by the experience of going on a journey; a journey of reconciliation, a journey of home ownership, a journey towards sustainability and a journey of collaboration between the city and the state to achieve the best outcomes for the community. In Kaurna language, this experience is known as Tapangka (Ta-pun-ka).
The site offers a total area of 6,850 square metres and currently accommodates UPark Andrew (123 temporary car park spaces to support the Market Square development), The Joinery and electric vehicle charging.
A key part of Council's Strategic Property Review, the Lord Mayor said Council's desired outcomes will all be achieved within the redevelopment.
"The State Government's proposal will help accelerate investment and growth within our city," said the Lord Mayor.
"Adelaide needs more affordable housing, so I'm pleased this plan includes 35 per cent affordable housing, more than double the 15 per cent requirement - as well as build-to-rent apartments and an opportunity for investment in community space.
"There will also be space for retail and hospitality outlets, and a mixed-use development, which will no doubt enhance and support the much-loved Market District."
Premier Peter Malinauskas said he is pleased that the state government is partnering with City of Adelaide to shape our city's future.
"We are doing everything we can as a Government to deliver affordable housing for South Australians at a time when the Australian dream of owning your own home feels harder to reach," Premier Malinauskas said.
"Now is the time to bring to life land across our State to provide a boost to the housing market - we want to increase stock and drive down prices."
Minister of Housing and Urban Development Nick Champion said the thoughtful integration of attractions, connections, housing variety and public realm would create something special for the entire city.
"This city-defining project, driven by affordable housing, will open the door to inner city living for South Australians who find themselves locked out of a market under significant pressure," Minister Champion said.
"We are bringing the Build-to-Rent model into the CBD for the first time, providing another way to help address housing shortages and ease the rental squeeze."
Renewal SA Chief Executive Chris Menz said the agency would continue to undertake significant engagement with First Nations people to deliver the Tapangka vision and draw on the very best talent the development sector had to offer.
"This is a significant economic opportunity and a chance to set a new benchmark for inner city living so we need to enlist the most experienced and expert development partners from private industry, the not-for-profit sector, other levels of government and our First Nations people and local communities to participate in this project," Mr Menz said.
"Our key focus is to drive the long-term sustainability and prosperity of our capital and our state, and this is a substantial chance to revitalise a beloved part of our city by creating a thriving, multi-functional precinct that delivers high quality outcomes across a mix of housing, retail and commercial uses.
"The precinct will leverage Adelaide's new confidence and international outlook by being bold in design, unapologetic in purpose and wholly focused on making people's lives richer, easier and more connected - all the while targeting carbon neutrality."
Bringing stakeholders 'on the journey' via ongoing engagement will form a strong part of Renewal SA's governance over the Tapangka project and instil an early sense of local pride and ownership of the project.
The multi-million-dollar development will become a significant jobs driver for South Australia. During the construction period alone, Tapangka is expected to generate 1,300-plus jobs and contribute more than $161 million of Gross Value Add to the state.
The former Bus Station site is currently utilised as UPark Andrew to maintain sufficient car parking for Central Market customers during the construction phase of Market Square. Development of the former Bus Station site won't start until after the Market Square development is complete.
Construction of the Tapangka site will be staged and is expected to commence in early 2026. Project completion is anticipated by 2029.
